Kotak Mahindra Bank has recently launched a new fixed deposit (FD) offering an interest rate of 10.5% for duration ranging between 1 year 1 day and 2 years. I recently opened a fixed deposit with Kotak Mahindra Bank (Chennai – Anna Salai Branch). The customer service was great and I was done with the formalities in less than 30 minutes. A week later I was informed that my account was open, through SMS and Email. Kotak Mahindra Bank also sent me a greeting card on my birthday. Hats off to the customer care that Kotak Mahindra Bank provides. Coming back to the interest rates for fixed deposits (term deposits), Kotak Mahindra Bank and tamilnadu merchantile bank both top the “highest interest rate offered” table. However Kotak Mahindra Bank offers 10.5% annualised whereas Tamilnadu merchantile bank offers 10.5% non annualised.